Potential Impact of New Educational Regulations on Beauty Sector

Back in 1980, I was a Navy veteran trying to make ends meet, living in my old car. I scraped together $700 to start a hair care business alongside a stylist named Paul Mitchell. We were optimistic that the American dream was still attainable. Fast forward 46 years, and that same dream seems to be under threat, as new federal regulations loom for future generations.

The Department of Education has suggested a new earnings premium index. This would evaluate vocational programs based on a straightforward metric: whether graduates earn more four years post-graduation compared to average full-time workers aged 25 to 34 without a college degree in the same state. Programs that underperform in this comparison for two out of three years would lose federal student aid. Alarmingly, the department’s data indicates that over 92% of cosmetology and barbering programs may fail this test.

This isn’t just a minor regulatory tweak. It spells disaster for countless hairdressers, barbers, estheticians, and nail schools across the country. Without access to Title IV aid, many students—often children of single mothers, veterans, first-generation Americans, and working-class families—won’t be able to afford the necessary training for state licensure. Many schools could face closure, leading to a severe decline in newly qualified professionals, especially at a time when skilled trades are touted as essential in an AI-dominated economy.

The beauty industry, a massive $100 billion sector, employs 1.3 million people in the U.S. It’s one of the few fields where individuals can quickly gain a marketable skill, step into a salon, and start a business within a year. Most professionals are women, working flexible part-time hours to support their families. A significant portion of their income is derived from tips, and while earnings grow substantially in the years after starting, these increases aren’t reflected in the department’s early career data.

This regulation misjudges the genuine value of cosmetology education by overlooking aspects like part-time work, tips, and the nature of self-employment. The study compares newly licensed workers with full-time workers possessing just a high school diploma, many of whom have been in their fields for over a decade. This creates a misleading narrative that suggests cosmetology programs fail to provide what many Americans truly need: flexible, entrepreneurial, face-to-face careers that can’t be automated.

The repercussions could be swift and widespread. If schools close, fewer qualified professionals will enter the job market at a time when demand is increasing. Salons and barbershops might be chronically understaffed. Rural areas, already facing service shortages, could become “beauty deserts,” devoid of essential grooming and wellness services. The public will lose access to safe, licensed care, affecting small business owners reliant on stylists and barbers, and this will inevitably ripple through product manufacturers and local economies.

This isn’t merely an issue for beauty schools; it represents a lost opportunity for those whom the American economy purportedly supports. Consider the single mother seeking independence through beauty, the veteran aspiring for a steady second career, or the young entrepreneur with dreams of owning a salon. These individuals helped shape a $100 billion industry, and they are the ones who will bear the brunt of restricted access to training and education.

Congress recognized the need for change when it passed the One Big Beautiful Bill Act. This legislation deliberately restricts the income assessment framework to undergraduate degree programs and diplomas, excluding certificate programs like cosmetology and barbering. The Department should adhere to this law rather than attempt to revise it.

Secretary Linda McMahon, with her business-building background, is well-positioned to address this issue. She understands what it takes to grow a business from the ground up. It would be wise for her to direct the Department to exempt non-degree programs in licensed trades from the earnings premium assessment. This single amendment could safeguard opportunities, maintain the workforce pipeline, and protect vital sectors of the economy.

The comment period for this proposal ends soon, and it’s crucial for stakeholders—school administrators, professionals, salon owners, manufacturers, and the millions who benefit from these services—to voice their concerns and defend this industry for future generations.

The beauty and barbering professions play a pivotal role in fostering independence, entrepreneurship, and creativity. They truly change lives each day.

We established this industry ourselves, and we are determined to fight for its future.